Market Update - 13.06.24

CURRENT MAJOR TOPICS WITH THE TOURISM INDUSTRY IN THE DACH REGION

• HOW MEDIA AND TRAVEL TRENDS DIFFER: A study by Pressrelations and IPK shows how different media and travel trends sometimes are. The study examined reporting from Germany, Austria, Switzerland, the UK and the USA on twelve European vacation destinations in 2023. The study found that the volume of travel in these five countries increased by 16 to 27 percent. Spain was the frontrunner in terms of both travel (37.6 million) and media coverage (7,820 articles). The Netherlands recorded the largest increase in media attention and actual trips. However, it also became apparent that media coverage does not always match the actual travel figures, particularly in Germany's neighboring countries. Thematically, budget tourism was the focus of reporting, followed by sustainability and adventure tourism. However, these topics do not always reflect the actual travel trends. Read more

• FEWER OVERNIGHT STAYS IN APRIL DUE TO EARLY EASTER VACATIONS: In April 2024, German accommodation providers recorded 37.1 million overnight stays, which corresponds to a decline of 7.4% compared to the previous year. This decline is likely due to the early start of the Easter holidays. However, if overnight stays in March and April are added together, there is an increase of 1.2% compared to the same period last year. While overnight stays by foreign guests rose slightly by 0.4% to 6.4 million in April 2024, the number of overnight stays by domestic guests fell by 8.9% to 30.7 million. This is probably due to the fact that most of the Easter vacations took place in March this year and many families therefore planned their vacation in March instead of April. Overall, accommodation providers recorded an increase in overnight stays of 3.1% to 125.8 million between January and April 2024. Overnight stays by domestic guests rose by 2.6% to 104.5 million and those by foreign guests by 5.5% to 21.3 million. Read more

• TRAVEL AGENCY SALES AND INCOMING ORDERS DOWN YEAR-ON-YEAR IN MAY: In May 2024, the turnover of the travel agencies included in the Tats-Reisebürospiegel was 2.6% below the previous year's figure, but cumulative annual turnover rose by 4.4%. Tourism sales, including cruises, remained almost unchanged (-0.6%), but cumulative sales were 3.8% higher. Cruises recorded minimal growth in May and 9.4% cumulatively. In the flight sector, there was a decline of 6.9% in May, but cumulative sales rose by 4.3%. The number of tickets fell by 5.9% in May, but rose by 5.2% cumulatively. Other sales rose by 7.7% in May and cumulatively by 7%. Incoming orders for tourism bookings fell by 14.3% in May, with cruises down by 18.1%. Nevertheless, the order backlog is 8% (tourism bookings) and 16.7% (cruises) up on the previous year. Read more

• FTI SUBSIDIARY BIG EXTRA ALSO INSOLVENT: The FTI subsidiary Big Xtra is insolvent and has filed for insolvency, with Axel Bierbach appointed as provisional insolvency administrator. Big Xtra was responsible for tours via direct sales channels such as Sonnenklar TV and Lidl Reisen. Bierbach and his team are intensively looking for solutions for trips booked from July 6, while all FTI trips have been canceled until July 5 to give customers planning security. They are actively negotiating with other tour operators to see if they can take over the package tours, but there is skepticism in the industry. A decision on the further handling of FTI bookings is to be made soon. Read more

CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• CONDOR AND EMIRATES BECOME CODESHARE PARTNERS: Condor and Emirates have signed a codeshare agreement which will be effective from October. As part of this partnership, Condor will provide Emirates flights with its own airline code. This will provide travelers with new connection options to numerous destinations in the Middle East, Africa, Central Asia and the Indian subcontinent. The codeshare partnership will begin with the launch of the Condor route between Berlin and Dubai in October. Emirates customers will benefit from seamless flight connections and extended connecting options on Condor flights via Germany to destinations such as Mallorca, the Canary Islands and international destinations in North, Central and South America and the Caribbean. Read more

• AIR TRAFFIC SEES ITSELF PREPARED FOR SUMMER TRAVEL: The air transport industry is gearing up intensively for the upcoming summer travel season to avoid long waiting times and other challenges. Airports in Germany are preparing for a rush that is close to the pre-crisis period, especially with the start of the summer vacations. Airlines are facing strong demand, despite high ticket prices and the insolvency of FTI, the industry is optimistic. At European level, the number of flights is similar to 2019 before the pandemic, while Germany is still lagging slightly behind. German air traffic control is reporting fewer delays, although airspace is once again well utilized. Digital services should help passengers to make their journeys smoother, while improved security checks at airports such as Frankfurt and Munich are aimed at more efficient handling. Read more

DESTINATION NEWS

• PORTUGAL: Portugal is planning to build the longest circular hiking trail in the world, called "Palmilhar Portugal", which will stretch over 3,000 kilometers. This ambitious tourism project will run through 90 to 100 regions of the country, from the mountains in the north to the Algarve in the south and back. The project was initiated two years ago and should be completed within three years. Each section of the route will be equipped with experience packages for hikers and the involvement of the local tourism industry. The opening of the first section is planned for the end of July, followed by further sections in the coming months. By the end of 2024, a total of 15 sections will be accessible, exclusively for hikers and without asphalt. Read more

• IRELAND: Tourism Ireland is launching a new online campaign entitled "What do you love about Ireland?", starring actor and influencer Uke Bosse. The campaign, which launched on June 10 and runs until June 23, features four short clips on Tourism Ireland's social media channels and a full-length version on YouTube. In the videos, Uke Bosse shows his personal favorite places and experiences on the Emerald Isle, which were filmed in Northern Ireland in April 2024, including the Giant's Causeway, Carrick-a-rede Rope Bridge, Portstewart Beach, Murlough Bay, Bushmills Distillery, Titanic Belfast and Castle Ward. Read more

• BULGARIA: Bulgaria is striving to win back the German market by organizing a panel of experts at the "Erlebe Bulgaria" event on Sunny Beach. Despite an increase in bookings, the number of visitors from Germany is still below pre-pandemic levels. More than 100 representatives from travel agencies, tour operators and airlines met to discuss Bulgaria's potential and identify challenges. Topics such as the limited number of flights and the country's image were discussed in depth, while tour operators such as TUI and Dertour emphasized Bulgaria's potential but called for an improved marketing strategy. Measures are planned to extend the season and increase flight capacity in order to further increase Bulgaria's attractiveness as a travel destination. Read more

• FAROE ISLANDS: The Faroe Islands are introducing a new "entrance fee" for tourists of up to 9 euros per person, which will come into effect from October 2025. Overnight guests will pay the equivalent of 2.70 euros per night into a conservation fund, with a cap of 27 euros per trip. Cruise tourists must pay 9 euros for shore excursions. Hiking trail fees are waived in favor of the fund, which is intended to support nature conservation measures. This new approach is also intended to transfer responsibility for tourism infrastructure to local communities. The Faroe Islands' tourism industry was previously affected by a general strike, which has since been resolved. Read more

• CATALONIA: Catalonia is presenting its diverse tourist attractions on a roadshow through Germany, Austria and Switzerland. In addition to the famous beaches, the Catalan Tourist Board emphasizes the regional history, language, culture and culinary diversity. In Zurich, Munich and Vienna, the Board organizes networking evenings to which tour operators and travel agencies are invited to get to know the advantages of Catalonia. Read more

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